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M*: A Simple Yet Well-Executed Approach To Dividend-Paying Stocks: (PRFDX)

TedTed
edited May 2019 in Fund Discussions
FYI: T. Rowe Price Equity Income has stuck to its playbook, earning a Morningstar Analyst Rating of Silver.

The approach is simple yet well executed. Manager John Linehan invests in undervalued dividend-payers. But unlike some equity-income funds, absolute yield is not the only driver here; valuation, the quality of management, and company fundamentals also matter.
Regards,
Ted
https://www.morningstar.com/articles/929547/a-simple-wellexecuted-approach-to-dividendpaying-s.html

Comments

  • But trails the S&P 500 index over 1,3,5, and 10yr periods and only pays 0.50% more in annual dividends. Nice fund I'm sure and it's hard to argue with success but it seems like it could be better.
  • @Ted, PRFDX is the fund symbol
  • @davidmoran: Thanks !
    Regards,
    Ted:)
  • M* often features meh funds w/ meh records and meh reasons to acquire. You gotta have new articles.
    As @Mark pointed out, there seems nearly zero reason really to favor this thing over TRP or Fido Blue Chip, or VOO or indeed DSENX.
  • edited May 2019
    PRFDX was hot out of the gate in the 90s (inception 1985). Talk of the fund community for several years and highly prized by investors. So hot that manager Brian Rogers became a regular on Wall Street Week. Seems to have taken a wrong turn somewhere along the way - though value has been out of favor for years. Not that it’s a bad fund. It isn’t. But hasn’t lived up to the earlier high expectations. I haven’t observed anything outstanding from the fund in near 20 years compared with some of Price’s other offerings. (But perhaps I haven’t looked hard enough.)

    Back to Rogers - He retired 2 years ago (2017). Here’s a brief blurb published prior to his retirement.

    BRIAN C. ROGERS
    Brian, 61, joined T. Rowe Price as a portfolio manager in 1982 and is currently chairman of the Board and chief investment officer. Previously, he served as portfolio manager of the U.S. Large-Cap Equity Income Strategy and the Equity Income Fund for 30 years, beginning with their inception in 1985. From 1994 to 2003 Brian was the first manager of the U.S. Value Equity Strategy and the Value Fund, and he was a founding member of the team managing the U.S. Large-Cap Value Equity Strategy from 2000 to 2015. He was elected to the firm's Board of Directors in 1997, joined the Management Committee in 2003, and was named Board chair in 2007.
    https://troweprice.gcs-web.com/news-releases/news-release-details/t-rowe-price-chairman-and-cio-brian-rogers-retire-march-2017
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